The new financial year is here, and with it comes a number of important tax and compliance changes that every business owner should be aware of.
Some changes could affect your cash flow immediately. Others simply require you to update your processes before they become expensive mistakes.
Here’s what should be on your radar.
1. Payday Super Has Arrived
One of the biggest changes this financial year is the move to Payday Super.
Instead of paying super quarterly, employers need to ensure super is paid much closer to each payday.
This means:
- Payroll processes need reviewing
- Cash flow planning becomes even more important
- Late payments can become far more expensive
▶ Watch our Payday Super explainer here
2. Tax Time Is Here! But Don’t Rush
Everyone loves a tax refund.
But lodging too early can actually create more problems than it solves.
Before lodging, make sure:
- Your employer has finalised STP
- Investment income has been reported
- Managed fund tax statements have arrived
- You have all of your deductions ready
▶ Watch the full video
3. Don’t Get Caught by the Medicare Levy Surcharge
Tax time is also a great opportunity to review your private health insurance.
Many Australians are surprised to learn they may have to pay the Medicare Levy Surcharge (MLS) if they earn above certain income thresholds and don’t have eligible private hospital cover.
For the 2025–26 financial year, the surcharge generally applies if your income is:
- More than $101,000 as a single, or
- More than $202,000 as a couple or family (with additional thresholds for dependent children).
Depending on your income, the surcharge can add 1% to 1.5% to your tax bill.
It’s also important to ensure you’ve correctly declared your spouse in your tax return. Your combined income may affect whether the surcharge applies, and incorrect information could result in paying more tax than necessary or having your return amended later.
Private health insurance isn’t the right choice for everyone, but understanding how the Medicare Levy Surcharge works can help you make an informed decision before lodging your tax return.
▶ Watch our Medicare Levy Surcharge explainer here
4. New AML Rules Mean More ID Checks
If your accountant asks for identification again…
Don’t panic.
New Anti-Money Laundering legislation now requires accountants, lawyers, conveyancers and real estate professionals to perform additional identity verification.
It’s not because we don’t trust you.
It’s because the law has changed.
▶ Watch the full explanation
5. If You Use Contractors…
Businesses operating in:
- Building & Construction
- Cleaning
- IT
- Security
- Road Freight
may have TPAR reporting obligations.
Now is the perfect time to make sure contractor details are complete and accurate.
▶ Watch the TPAR video
6. It’s The Perfect Time To Review Your Business
A new financial year isn’t just about compliance.
It’s also your opportunity to ask:
- What’s working?
- What isn’t?
- Where is cash going?
- Are your systems helping or hurting?
The businesses that perform best aren’t the ones working hardest.
They’re the ones making better decisions.
A new financial year always brings change.
Some of these changes are legislative.
Some are operational.
All of them present an opportunity to build a stronger business.
If you’re unsure how any of these changes affect you, now is the perfect time to speak with your accountant.
At NGR Accounting, we’re here to help business owners stay compliant, improve profitability and build businesses that last.
Need help navigating the new financial year?
👉 https://ngraccounting.com.au/contact-us/